11 KPIs for Customer Retention: The Secret to Customer Loyalty
Posted: Mon Jan 06, 2025 9:32 am
To be successful in your business, you need to measure your customer retention efforts. With customer retention KPIs, you can get an overview of your audience and see what you can do to improve their experience and retain them.
Each KPI can serve different needs in terms of customer retention, and you should keep these metrics in mind if you want to grow your business with loyal customers.
Key performance indicators (KPIs) provide a tangible way to measure the success of your customer retention strategies. In this article, we’ll take a closer look at 11 KPIs for customer retention.
Without further ado, let's learn more about customer retention metrics!
11 Important Key Performance Indicators to Increase Customer Loyalty
People working in the office and looking at sticky notes on the wall
Businesses can use several key performance indicators (KPIs) to increase customer loyalty . KPIs provide valuable data for companies to measure and track customer loyalty. By monitoring these metrics regularly, you can see what is working well and what is not.
This way, you can see what needs improvement and make data-driven decisions to increase customer satisfaction and loyalty.
The most common KPIs are listed below, so keep these indicators in mind to increase customer loyalty.
1. Customer Retention Rate (CRR)
Customer retention rate measures the percentage of customers who stay with a business over a given period. A high customer retention rate indicates that customers are happy and satisfied, which can lead to increased loyalty and repeat purchases.
Popupsmart logo customer retention rate calculation
You can calculate this with the formula:
Müşteri Tutma Oranı = [(Dönem Sonundaki Müşteri Sayısı - Kazanılan Yeni Müşteri Sayısı) / Dönem Başındaki Müşteri Sayısı] x 100
CRR is calculated by dividing the number of customers at the end of the period by the number of customers at the beginning, then multiplying by 100.
A high CRR indicates that the business is successful in retaining its customers, while a low CRR indicates that improvements can be made in customer loyalty. By tracking this KPI, companies can allocate resources more effectively, new zealand whatsapp phone number such as improving customer service, enhancing the customer experience, or offering loyalty programs.
Increasing CRR can contribute to business growth and success by increasing customer satisfaction, repeat purchases, and long-term customer relationships.
2. Customer Lifetime Value (CLV)
Customer lifetime value (CLV) estimates the net profit from a customer’s future relationship. It helps businesses understand the importance of customer retention and investing in customer loyalty.
Popupsmart logo and customer lifetime value calculation with illustration of a woman wearing headphones and using a computer
It can be calculated as follows:
Müşteri Yaşam Boyu Değeri = (Müşteri Değeri * Ortalama Müşteri Ömrü)
You can calculate customer value as follows:
Müşteri Değeri = Ortalama Satın Alma Değeri * Ortalama Satın Alma Sayısı
Each KPI can serve different needs in terms of customer retention, and you should keep these metrics in mind if you want to grow your business with loyal customers.
Key performance indicators (KPIs) provide a tangible way to measure the success of your customer retention strategies. In this article, we’ll take a closer look at 11 KPIs for customer retention.
Without further ado, let's learn more about customer retention metrics!
11 Important Key Performance Indicators to Increase Customer Loyalty
People working in the office and looking at sticky notes on the wall
Businesses can use several key performance indicators (KPIs) to increase customer loyalty . KPIs provide valuable data for companies to measure and track customer loyalty. By monitoring these metrics regularly, you can see what is working well and what is not.
This way, you can see what needs improvement and make data-driven decisions to increase customer satisfaction and loyalty.
The most common KPIs are listed below, so keep these indicators in mind to increase customer loyalty.
1. Customer Retention Rate (CRR)
Customer retention rate measures the percentage of customers who stay with a business over a given period. A high customer retention rate indicates that customers are happy and satisfied, which can lead to increased loyalty and repeat purchases.
Popupsmart logo customer retention rate calculation
You can calculate this with the formula:
Müşteri Tutma Oranı = [(Dönem Sonundaki Müşteri Sayısı - Kazanılan Yeni Müşteri Sayısı) / Dönem Başındaki Müşteri Sayısı] x 100
CRR is calculated by dividing the number of customers at the end of the period by the number of customers at the beginning, then multiplying by 100.
A high CRR indicates that the business is successful in retaining its customers, while a low CRR indicates that improvements can be made in customer loyalty. By tracking this KPI, companies can allocate resources more effectively, new zealand whatsapp phone number such as improving customer service, enhancing the customer experience, or offering loyalty programs.
Increasing CRR can contribute to business growth and success by increasing customer satisfaction, repeat purchases, and long-term customer relationships.
2. Customer Lifetime Value (CLV)
Customer lifetime value (CLV) estimates the net profit from a customer’s future relationship. It helps businesses understand the importance of customer retention and investing in customer loyalty.
Popupsmart logo and customer lifetime value calculation with illustration of a woman wearing headphones and using a computer
It can be calculated as follows:
Müşteri Yaşam Boyu Değeri = (Müşteri Değeri * Ortalama Müşteri Ömrü)
You can calculate customer value as follows:
Müşteri Değeri = Ortalama Satın Alma Değeri * Ortalama Satın Alma Sayısı